A publicly traded company has its shares trading at $12. An unsolicited buyer publicly announces an offer to purchase the company for a price equal to $18 per share. The difference between the $12 per share and $18 per share amounts to $500 million. This is an example of

A. valuing the asset under the liquidation approach.

B. an explicit cost of $500 million cost to shareholders directly relating to the Principal-Agent problem.

C. valuing the asset using the income approach.

D. valuing the asset using a replacement approach.